Risk Management - Operational Risk for Funds

Operational risk is the "risk of loss resulting from inadequate or failed internal processes, people and systems or from external events" (Basel Accord). Because operational risk impacts practically every area of the investment industry, it has become an important area of focus among financial service professionals. This course provides participants with a good understanding of operational risk in the fund industry and how to manage it.

• Define operational risk in accordance with market standards
• Identify and categorise the different causes of operational risk in the investment fund industry
• Assess the potential impact of diverse operational risks on funds
• Learn how to apply the operational risk management cycle
• Identify different means of mitigating operational risk
• Understand the different players in the fund industry and how they are impacted by operational risk

• Introduction
• Causes of operational risk
  • Processes
  • People
  • Systems
  • External events
• Operational risk management cycle
  • Identification
  • Assessment
  • Mitigation and control
  • Monitoring and reporting
• Supporting processes
  • Loss data collection process
  • Risk & control self-assessment (RCSA)
  • Key risk indicators
• Market players
  • Transfer agents
  • Distributors
  • Fund accountants
  • Custodians/depositaries
• Outsourcing risk
• New product approval process
• Other operational risks
  • Real assets
    • Private Equity
    • Real estate
• New technology
  • A.I.
  • Financial Technology
• Business continuity management
  • Disaster recovery plan
  • Resolution plan
  • Business continuity plan
• Future trends